A = P.a (hb. A = P(1 + i)t = 100,000 (1.02)2.5 = Answer P = A[a(t)]-¹ (hb. P = A(1 + i)t = 100,000 (1.02)-²= Answer

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A = P.a (hb. A = P(1 + i)t = 100,000 (1.02)25 = Answer
P = A[a(t)]-¹ (hb. P = A(1 + i)t = 100,000 (1.02)-² = Answer
1
Transcribed Image Text:A = P.a (hb. A = P(1 + i)t = 100,000 (1.02)25 = Answer P = A[a(t)]-¹ (hb. P = A(1 + i)t = 100,000 (1.02)-² = Answer 1
1. Imagine you have 100,000 worth in a fund today November 15, 2022. Give enough of it on the
due date and at the corresponding interest rate.
a) at an annual force of interest of 4.25% on August 15, 2024
b)
at a simple rate of discount p.a. of 6% on Feb. 13, 2023 (Banker's Rule)
c) at a simple rate of discount p.a. of 9% on Sept. 30, 2022 (Ordinary Discount)
Transcribed Image Text:1. Imagine you have 100,000 worth in a fund today November 15, 2022. Give enough of it on the due date and at the corresponding interest rate. a) at an annual force of interest of 4.25% on August 15, 2024 b) at a simple rate of discount p.a. of 6% on Feb. 13, 2023 (Banker's Rule) c) at a simple rate of discount p.a. of 9% on Sept. 30, 2022 (Ordinary Discount)
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